S.R.O. 333(I)/2011, Islamabad, the 02nd May, 2011

REDUCED RATE OF WITHHOLDING TAX ON SALES/SUPPLIES PROCURED BY TAXPAYERS COVERED UNDER SALES TAX ZERO RATED REGIME. S.R.O. 333(I)/2011, Islamabad, the 2nd May, 2011:- In exercise of the powers conferred by sub-section(2) of section 53 of the Income Tax Ordinance, 2001(XLLX of 2001), the Federal Government is pleased to direct that the 2001following amendments shall be made in the Second Schedule to the said Ordinance, namely:- In the aforesaid schedule, in Part IV, for clause(45A), the following shall be substituted, namely: (45A)(a) The rate of deduction of withholding tax under clauses(a) and(b) of sub-section(l) of section 153 shall be one percent on local sales, supplies and services provided or rendered to the following categories of sales tax zero-rated taxpayers, namely:- (i) textile and articles thereof; (ii) carpets; (iii) leather and articles thereof including artificial leather footwear; (iv) surgical goods; and (v) sports goods: Provided that withholding tax under clauses(a) and(b) of sub-section(1) of section 153 shall not be deducted from sales, supplies and services made by traders of yarn to the above mentioned…